4 ms·

No salary. So 7.5% is reasonable post-acceptance to incubator?

• blackcrowe 15y ago
  No salary? You sound like a freaking tightwad.
• michaelochurch 15y ago
  At no salary, 7.5 is small. What you should do is come up with fair salaries and rate each person's work accordingly. What I mean is this. Let's say that you're 30 and fairly senior with a moderate amount of team lead experience-- $150,000 / year-- and have been working for 18 months. Your junior co-founder, who's just out of college-- $80,000 / year-- has been working for 12 months. So your investment (opportunity cost) is $225,000 and his is $80,000. The market valuation of the company may or may not be $305,000... it could be effectively zero, or it could be an order of magnitude higher, but this gives you a sense of what the proportions should be. The younger person should have 80/225 of what you have. If he stays longer, that number should evolve in his favor, which is one of the things vesting is for. Of course, it's not clear what these time-of-stay amounts will be from the outset, which is why you need vesting and other provisions. In your situation, rate yourself around $120,000/year (intermediate seniority with a promising product) and a promising, out-of-college programmer around $90,000/year. You're not going to actually pay these amounts to anyone, but these numbers should be the basis for equity amounts. Also scale for above-board effort, giving a 1.5 multiplier on people who really give their all (set aside some equity for this).
• jcampbell1 15y ago
  What is your current revenue?